Azerbaijan : Power Distribution Enhancement Investment Program
The Power Distribution Enhancement Investment Program (the Investment Program) aims to support the government's efforts in providing reliable and efficient power supply to meet its growing energy needs for inclusive development, especially in secondary cities and rural areas. Through rehabilitation and augmentation of the power distribution network throughout the country, the investment program will improve power supply reliability and efficiency, and support the improvement of operational and financial performance of the state-owned power distribution company, Azerishiq Open Joint-Stock Company (OJSC).
Project Details
-
Project Officer
Tareen, Adnan
Central and West Asia Department
Request for information -
Country/Economy
Azerbaijan -
Modality
-
Sector
- Energy
| Project Name | Power Distribution Enhancement Investment Program | ||||
| Project Number | 42401-014 | ||||
| Country / Economy | Azerbaijan |
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| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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| Sector / Subsector | Energy / Electricity transmission and distribution - Energy efficiency and conservation |
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| Gender | Some gender elements | ||||
| Description | The Power Distribution Enhancement Investment Program (the Investment Program) aims to support the government's efforts in providing reliable and efficient power supply to meet its growing energy needs for inclusive development, especially in secondary cities and rural areas. Through rehabilitation and augmentation of the power distribution network throughout the country, the investment program will improve power supply reliability and efficiency, and support the improvement of operational and financial performance of the state-owned power distribution company, Azerishiq Open Joint-Stock Company (OJSC). | ||||
| Project Rationale and Linkage to Country/Regional Strategy | A multitranche financing facility (MFF) is proposed for the Investment Program, which will allow ADB to establish a stronger long-term partnership with the government meeting its development goals, support energy sector reform, improve energy policies, and strengthen governance and capacities. The Investment Program has the following key benefits: (i) support to the government in achieving its strategic development targets, (ii) introduction of modern technology and improvements in energy efficiency, (iii) support to Azerishiq OJSC to improve corporate governance and transparency, (iv) knowledge and skills transfer via the training of power utility staff to international standards in the implementation of the latest technology, and (v) improving electricity supply service quality and enhancing productivity of small- and medium-sized enterprises. The investment program will benefit 1.45 million customers, of which 60% are residential customers. | ||||
| Impact | increased availability of reliable electricity supply to all domestic consumers. |
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| Project Outcome | |
|---|---|
| Description of Outcome | improved efficiency and reliability of the power distribution networks. |
| Progress Toward Outcome | In Q3 2017, the rehabilitation of 110/35/10 kV substations were completed, and these were energized. Physical works on other contracts (substation rehabilitation of 35/10 kV substations is 60% completed; works on distribution lines and installation of meters) are in progress. |
| Implementation Progress | |
| Description of Project Outputs | Customer services lines rehabilitated and smart meters installed and operational Distribution network including distribution lines and substations rehabilitated, augmented, and functional Institutional capacity improved and corporate reform achieved |
| Status of Implementation Progress (Outputs, Activities, and Issues) | In progress. In progress. In progress. In progress. Construction works for 110/35 kV substations completed and energized. The rest of rehabilitation works are in progress. Works are in progress. |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | No major environmental safeguards issues are envisaged under the investment program. |
| Involuntary Resettlement | No major social safeguards issues are envisaged under the investment program. |
| Indigenous Peoples | No indigenous peoples will be affected by the investment program. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Series of public consultation including focus group discussions covering 6 districts of Soumgayit regency were conducted in the months of February to April 2010 in the strategic locations covered by the investment program. The objectives of C&P were: (i) disseminate project information; (ii) create awareness among the affected persons (APs) and elicit response from the public; (iii) seek the opinions of the public; and (iv) resolve the potential issues that would affect the common property and religious structures. Different categories of stakeholders have attended in focus group discussions at the village level like the project affected persons (APs) government officials, opinion leaders, among others. Informed and explained to them were the project features, about operational and safety requirements to the people in the locality, concerns and perceptions on the adverse impacts on their property and assets, livelihood, access to public facilities and common property resources, etc. Disclosed during the consultations were the social and environmental impacts and resettlement and rehabilitation issues. |
| During Project Implementation | Public consultations |
| Business Opportunities | |
|---|---|
| Consulting Services | Azerishiq will recruit all consulting services to be financed under the Investment Program in compliance with Guidelines on the Use of Consultants (April 2010, as amended from time to time). Consultants will be recruited following the quality- and cost-based selection method using a quality:cost ratio of 90:10. |
| Procurement | Azerishiq will carry out all procurements to be financed under the Investment Program in compliance with ADB's Procurement Guidelines (April 2010, as amended from time to time). Azerishiq will follow international competitive bidding (ICB) procedure for works contracts estimated to cost the equivalent of US$10 million or more, and goods contracts estimated to cost the equivalent of US$ 500,000 or more. Azerishiq will use national competitive bidding (NCB) procedure for works contracts estimated to cost less than US$10 million and for goods contracts estimated to cost less than US$500,000. ADB's standard bidding documents (SBD) will be used for all procurements. |
| Responsible ADB Officer | Tareen, Adnan |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Energy Division, CWRD |
| Timetable | |
|---|---|
| Concept Clearance | 04 May 2015 |
| Fact Finding | 25 Aug 2015 to 04 Sep 2015 |
| MRM | 11 Dec 2015 |
| Approval | 12 Jul 2016 |
| Last Review Mission | - |
| Last PDS Update | 08 Nov 2018 |
MFF Facility Concept 0091-AZE
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 1,000.00 | Cumulative Contract Awards | |||
| ADB | 750.00 | - | 0.00 | 0.00 | % |
| Counterpart | 250.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | - | 0.00 | 0.00 | % |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| Power Distribution Enhancement Investment Program: Facility Administration Manual | Facility Administration Manual | Dec 2020 |
| Power Distribution Enhancement Investment Program: Facility Administration Manual | Facility Administration Manual | May 2016 |
| Power Distribution Enhancement Investment Program: Report and Recommendation of the President | Reports and Recommendations of the President | May 2016 |
| Power Distribution Enhancement Investment Program: Framework Financing Agreement | Framework Financing Agreement | Apr 2016 |
| Power Distribution Enhancement Investment Program - Tranche 1: Procurement Plan | Procurement Plans | Apr 2016 |
| MFF Elektrik Paylaşdırma Prosesinin Gücləndirilməsinə İnvestisiya Proqramı : Layihə Data Sənədi | Translated PDS | Oct 2015 |
| MFF Power Distribution Enhancement Investment Program: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | May 2015 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
| Title | Document Type | Document Date |
|---|---|---|
| Power Distribution Enhancement Investment Program: Environmental Assessment and Review Framework | Environmental Assessment and Review Framework | Dec 2015 |
| Power Distribution Enhancement Investment Program - Tranche 1: Initial Environmental Examination | Initial Environmental Examination | Aug 2015 |
| Power Distribution Enhancement Investment Program: Resettlement Framework | Resettlement Frameworks | Jul 2015 |
| Power Distribution Enhancement Investment Program: Environmental Assessment and Review Framework | Environmental Assessment and Review Framework | Jul 2015 |
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
ADB Approves $750 Million Loan Facility To Lift Power Reliability In Azerbaijan
ADB approved a $750 million multitranche program loan facility to upgrade power distribution networks in Azerbaijan to benefit over 1.4 million consumers and give the wider economy a lift by providing more reliable electricity supplies.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| AZE: Power Distribution Enhancement Investment Program | Advance Notice | Archived |
Contracts Awarded
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Power Distribution Enhancement Investment Program - Tranche 1: Procurement Plan | Procurement Plans | Apr 2016 |